Homepage Neoen newsroom

Neoen’s Hornsdale Power Reserve to deliver new and additional cost savings for South Australians from December 2018

Announcement posted by Neoen 20 Dec 2018

-- South Australians set to save millions of dollars in electricity bills thanks to a newly developed System Integrity Protection Scheme 
-- The new scheme will contribute to enabling AEMO to raise the import limit on the Heywood interconnector from 600 MW up to 650 MW, following a review of results from a recent test 
-- These new cost reductions are in addition to the $40 million annual FCAS savings documented in the latest Aurecon report  

Neoen (ISIN Code: FR0011675362, ticker: NEOEN), one of the fastest-growing leading independent producer of exclusively renewable energy worldwide, has unveiled that its Hornsdale Power Reserve (HPR) is set to deliver millions of dollars per year in new and additional cost savings for South Australians from late-December 2018. The latest development comes off the back of a successful newly developed System Integrity Protection Scheme (SIPS) test, which will contribute to enabling the Australian Energy Market Operator (AEMO) to lift its import limit on the SA-VIC Heywood Interconnector from 600 MW up to 650 MW. 

SIPS are increasingly utilised in energy systems around the world to provide additional power transfer capacity and enhanced operational security. HPR contributes to AEMO’s and ElectraNet’s SIPS, which reduces the chance of the Heywood Interconnector overloading when multiple generators disconnect within South Australia. 

The new SIPS, which is contributed by HPR free of charge, is specifically designed to further support electrical interconnectors between South Australia and other states. The capacity limits on interconnectors are set below the physical limit because of system stability issues – the SIPS increases system stability, allowing capacity limits to be lifted. 

At its core, the new interconnection limit will bolster competition within the South Australian electricity market by increasing interstate trade. This reduces wholesale power prices and subsequently creates a knock-on effect on end-user charges across the state. 

Anticipated cost savings are in the millions of dollars per year. This is in addition to the reduction of close to $40 million in the Frequency Control Ancillary Services (FCAS) market by increased competition and the removal of 35 MW local FCAS constraint, as reported in the independent study by Aurecon released during the first-year anniversary of the battery earlier in December. 

Franck Woitiez, Managing Director for Neoen Australia, said, “Over the past year, Neoen has worked tirelessly with Tesla, AEMO, ElectraNet and the South Australian government, to improve and expand the capability of our Hornsdale Power Reserve for the benefit of energy consumers across the state. The new HPR-SIPS is a direct result of this collaboration. It is another prime example of how innovative, forward-looking and advanced renewable energy technology, when combined with storage, has the power to significantly drive down electricity prices for consumers across the country.” 

Woitiez added, “These savings are just the beginning of what is to come with the planned new large interconnector between South Australia and New South Wales.” 

Located near Jamestown, South Australia, the HPR is the world’s largest lithium-ion battery energy storage system. Owned and operated by Neoen, the battery is supplied by Tesla and was built to stabilise the South Australian electricity grid, facilitate integration of renewable energy in the state, and help avoid load-shedding (i.e. blackout) events. 

The fully operational site has a discharge capacity of 100 MW and energy storage capacity of 129 MWh, and shares the same 275 kV network connection point as the 317 MW Hornsdale Wind Farm.

About Neoen

Founded in 2008, Neoen is France’s leading and one of the world’s most dynamic independent producers (IPP) of renewable energy. With a current capacity of more than 2 GW already in operation or under construction, and a further 1 GW of projects formally awarded and secured, Neoen has doubled its size in over just 18 months. Having its headquarters in France, Neoen has subsidiaries in Australia, El Salvador, Zambia, Jamaica, Portugal, Mexico, Finland and Argentina and has projects in more than 15 geographies. It operates Europe’s most powerful solar PV farm (300 MW in Cestas, France) and the world’s largest lithium-ion power reserve in Hornsdale, Australia (100 MW/129 MWh storage capacity). At the end of 2017, Neoen won one of the largest (375 MW) and the most competitive solar project in Mexico. Neoen is targeting 5 GW capacity in operation and under construction by 2021. Neoen (ISIN Code: FR0011675362, ticker: NEOEN) is listed since October 2018 on the Compartment A of the regulated market of Euronext Paris. 

For more information: http://www.neoen.com 

Media Contacts  

Red Agency 
Daphne Chuah 

Havas Paris 
Hugo Boussier

Neoen 
Axelle Vuillermet